A diversified portfolio has many stocks as opposed to a single stock.Diversification can occur with a little as stocks.
A)5
B)10
C)20
D)100

Question

Quizplus · Accepted Answer

While diversification can occur with as few as 5 or 10 stocks, the more stocks you have in your portfolio, the better diversified it will be. A portfolio of 20 stocks will provide a good level of diversification and help to decrease the overall risk of your portfolio. It is important to note that diversification does not guarantee a profit or protect against loss, but it can help to minimize the impact of market fluctuations on your portfolio.

A Diversified Portfolio Has Many Stocks as Opposed to a Single